McDermott International Cuts About 1,700 Jobs
McDermott International Inc., an engineering and construction company based in Houston, has decreased its employee roster by nearly 1,700 in response to 1Q losses, the company announced recently. According to a release on the company’s website, McDermott reported a 1Q net loss of $14.5 million.
“Through the end of March, McDermott has decreased its employee count by 475 positions” as part of a cost structure focused on improvements “in profitability and flexibility through reducing fixed and variable costs,” according to the release. The company also cut more than 1,200 additional positions which were primarily related to craft labor in the company’s fabrication yards.
McDermott reported 1Q revenues of more than $550 million, down $53.3 million from 1Q in 2014. Operating income for the 1Q was $6.6 million, which was “positively impacted by favorable changes in cost estimates and revenue recovery due to an ongoing focus on execution and improved customer relationships.”
McDermott joins other Houston-based oil and gas companies who have reduced workforces recently due to a global drop in crude oil prices.
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